Google resets its consumer device strategy

Google may have sold
Motorola Mobility, but it has stacked
its bench with formidable engineering talent that it inherited from Nest.
The group’s talent and resources better position Google to bring its own
gadgets into the marketplace.

It’s only been a few years since Google acquired
Motorola Mobility. Google gained a massive patent portfolio that was intended
to fortify its Android mobile operating system against IP lawsuits. However, the
company was never actually integrated into Google, lost
billions, and the patents were far less
valuable than was expected.

The $2.91 billion sale
of Google’s Motorola Mobility smartphone unit to Lenovo this Wednesday was a
far cry from the $12.5 billion that Google paid for it in 2011, but Google has retained
many of the Motorola patents. More details have emerged since the transaction
revealing that it was part of a broader shift in strategy at Google.

It’s now been revealed
that Google was negotiating to sell Motorola in parallel with its acquisition
of Nest. Google will continue to pull the strings over the Android ecosystem,
and having Lenovo as a major device OEM strengthens the platform. What the Nest
team will do next is the question, and it may surprise us all.

Nest founder and CEO Tony Fadell and many of his
engineers worked on the original iPod team at Apple. They’ve since been focused
on home
automation with the Nest thermostat and more recently, a reimagined smoke
detector. They are disruptors, and that bodes well for Google's future.

Products like Google
Glass and the company’s glucose sensing contact
lenses are less conventional than smartphones and tablets, but are miles
away from being mass-market products (the lenses are also only experimental).
Fadell and his team could help Google create devices that do sell and broaden its business.